I've seen may companies where the CEO has jumped ship when the company is headed for a downturn with no improvement in sight. The fact that Spectrum's CEO is staying with the company speaks volumes and is obviously good for Spectrum in the long run. In my opinion, this is a winner.
Westwood, I do tend to agree, but I don't think Raj really worries about litigation, especially concerning Fusilev administration with Folotyn. We know leukovorin has worse side effects than Fusilev. If Folotyn is given with Fusilev,, patients have a better chance of completing the course of treatment. Why use a crud drug with adverse side effects to prevent other negative side effects? Imo, why add more side effects? The patient will recover faster and be able to complete the course of treatment with less difficulty, imo. If the patient has to contend with serious side effects, he may not be able to complete the course. He will have taken a large amount of Folotyn, but if the crud drug creates more problems, he may not complete the full treatment. That's a lot of drugs and patient misery for next to nothing.
Then what, start all over again in a few months? This is penny wise, pound foolish, imo.
interestingly, generic leuco is not much of a profitable item to manufacture. i can envision if economy stays wobbly or weakens further.......then the generic manufacturers could either make economic decisions to eliminate generic manufacture, reduce quantity of generic,,, or possibly save money by expending less money on quality control of making the generic (which could lead to repeat of fda shutting down generic leuco manufacture for a extended period of time)..........the no profit in making generic leuco theory is a legitimate theory imo. COUPLE this theory with the fact that community docs do enjoy the larger monetary reimbursement they receive from administering fusilev versus generic...........and i can buy in to the sppi contention that community setting doctors will maintain and hopefully increase their fusilev preference over generic. also the fusilev product will assuredly always be available and the quality control will be superior to the low profit generic.........these factors benefit fusilev. will be interesting to see the last 2 fiscal quarters of how well fusilev sells to the "community setting" for fiscal year 2013. it is now an unknown variable and i dont think any of us has the answer to this question at this point in time.
obamacare will eat away all the oncologic clinic business of Fusilev. Remember there is NO CLINICALLY PROVEN advantage of Fusilev over Leucovorin. Pls see Fusilev label and the clinical studies done that compare Fusilev arm with generic leucovorin. Zero clinical benefits of fusilev over generic leucovorin. That being said, Fusilev price tag of 60 times generic leucovorin, will very likely be addressed in Obama's affordable care act....it is an unnecessary medical expense esp when leucovorin is abundant supply which is what cassidy's bill is expected to do.
i respectfully disagree to a point...... i like notion of raj no longer being face/spokesperson of sppi corp. i like raj in another capacity , perhaps chief scientific officer as well as any other chieftan titles you can think of - however not CEO. I advocate raj stay with sppi corp as its most valuable asset. BRING in a new well respected CEO. cut some dead wood to offset new ceo compensation. current B.O.D. IS a joke, imo. they are utterly useless. raj compensation needs t/b drastically reduced and reformulated. new ceo should have incentive based compensation (tied to sppi mkt cap). going forward sppi cash is gonna get tight. long term as i posted repeatedly, i believe sppi corp's mkt cap will hit historical highs in perhaps 2015/16. short term, mid term i dont see catalysts to propel pps upwards notably. raj is a short term and mid term component of current pps suppression, imo because he lost trust of investment community. i believe s/h dilution sometime in 2014 shall occur. just my personal belief. i dont forsee zevalin revenue showing notable uptick in 2013 . probably not 2014 first half either. takes long time to get docs to shift to zevalin and docs get greater reimbursement from Not using zevalin. we were told unequivocally that 75% fusilev sales go to community settings and 25 % GO to hospital settings. so i still dont comprehend the massive downward fusilev revenue revision in light of a 75/25 fusilev sales distribution. the 25 % hospitals were furthermore getting the 340b purchase price markdowns yielding sppi lower profit margins. so how does this data jibe with the massive announcement of decreased fusilev revenue. ( i appreciate some folks explain sppi is UNDERPROMISING SO THEY CAN OVER DELIVER on the fusilev revenue to be reported going forward)(but who knows if that will come to fruition). notable; despite what i would prefer to see occur,,,,, i dont necessarily see DR RAJ being able to make the structural changes .
this $12.45/sh to $7.26/sh move is unacceptable. the basis for the slide in pps , assuming good faith on all sppi mgmt members,,,,,,, is also unacceptable imo.......... the damage done affects shareholders for the near/short term and mid term..(imo) that means unless you are buying/accumulating @ 7.26/sh for longer term prospective profits,,,,, then holders are stuck in limbo with their money tied up losing out on the "opportunity value of using that money elsewhere to make profit" . long term.........i believe, once again, by 2016, sppi mkt cap may well hit all time company historical highs. but that is 2016 or even mid/late 2015. for this extended wait to realize notable profits, should raj hold on to the CEO helm ? that is one question to analyze, i believe.
i dont buy into the legal fraud allegations w/r to raj. just my own assessment based on long term observation. i see raj as a scientist endeavoring to find improvements in cancer fighting treatments.
ken keller wasnt here long enough to craft any fraud designs for sppi, imo. i see insurance atty's handling the case for sppi and at best, years down the road, some monetary settlement which wont break sppi nor come close to breaking sppi corp.
my biggest concern is s/h dilution sometime in 2014. i hope i am wrong. but i cannot ignore this possibility. i hold no great revenue hopes for zevalin in 2013 and quite frankly, not in 2014 either.
folotyn might be raj's greatest feat of all. i cannot add value to sppi mkt cap based on apaziquone at this time. it already failed fda once. i can envision possible crl or denial or approval by fda- but i dont see it as now being a quantifiable asset that should notably increase sppi mkt cap near or mid term,,, absent further encouraging apaziqone data being published.